Post session - Quick review

Consolidation was bound to emerge at D-Street, after four long sessions of rally, which took Indian equity markets soaring higher by 4% in the passing week and today’s session was no exception to this rule. In absence of buying interest, the range -bound session of trade turned out to be lackluster one as investors stayed on the bay awaiting cues from Parliament proceedings. Although the  deadlock over FDI in retail came to an end in Lok Sabha on Thursday itself as the Speaker fixed the date for a debate and vote on the issue, to take place on December 4 and December 5, but qualms on whether foreign supermarket chains such as Wal-Mart Stores set up shop, would be allowed via a vote, plagued the sentiment of Indian equity markets, with Parliament being adjourned for the day on Monday after paying tributes to former prime minister Inder Kumar Gujral, who breathed his last on Friday at the age of 92.  Nevertheless, not much of damage was done to newly found of strength of bourses amidst good macro-economic reports. Indicating further improvement in the health of the Indian manufacturing sector, the seasonally adjusted HSBC Purchasing Managers’ Index, a composite indicator of operating conditions in the manufacturing economy posted a good advancement in November, surging to their five-month high to 53.7 from 52.9 in October.

In the range-bound session of trade, 30 share barometer index, Sensex, despite losing close to 3/10 points, ended above the psychological 19300 level, while the 50 share index, Nifty, after appearing close of piercing past 6000 mark, settled above 5850 crucial bastion.  The session, clearly belong to broader indices, which went home with gains of over 3/ 4 percent.

On the global front, Asian shares ended mixed after signs of a stabilising Chinese economy were weighed against worries that an impasse in U.S. budget talks could tip the world's largest economy into recession. The pace of China's manufacturing activity quickened for the first time in 13 months in November, with the final reading for the HSBC Purchasing Managers' Survey (PMI) rising to 50.5 after seven quarters of slowing economic growth. Meanwhile, European stocks were mostly trading in green.

Closer home, intra-day recovery mainly aided bourses in limiting losses. Much of the support was rendered from Realty, Metal and Power counters, while Bankex, Fast Moving Consumer Goods and Technology counters, emerged as top laggards. In other stock-specific action, uptake of Jet Airways, spelled optimism among other Aviation stocks, namely, Spicejet and Global Vectra Helicorp, which scooped up gains in the range of 4-5%. Jet Airways gained on a report suggesting that the airline will soon seek regulatory approval to tweak its ownership pattern to facilitate a stake sale to Etihad Airways. Retail stocks, viz, Pantaloon Retail, Shopper’s Stop and Trent, rallied with handsome gains, on hopes that FDI in retail would slip through the door. Additionally, even Auto stocks hogged substantial limelight on reporting November sales figures. Mahindra & Mahindra surged to hit its 52-week high of Rs 961.60 after the company reported an 18 per cent rise in auto sales at 48143 units during November 2012 against 40722 units during November 2011.  Even, Maruti Suzuki accumulated over 1% gained on reporting 12.45% increase in November sales.

Back home, the BSE Sensex lost 34.58 points or 0.18% and settled at 19305.32. The index touched a high and a low of 19416.45 and 19257.30 respectively. 13 stocks advanced against 17 stocks declines on the index (Provisional). The market breadth on the BSE was positive; there were 1671 shares on the gaining side against 1255 shares on the losing side while 125 shares remain unchanged. (Provisional)

Broader indices outperformed frontline equity indices; both BSE Mid cap and Small cap indices ended up with gains of 1.21% and 0.86% respectively. (Provisional)

The top gaining sectoral indices on the BSE were, Realty up by 1.35%, Metal up by 0.80%, Power up by 0.65%, Consumer Durables up by 0.55% and Oil & Gas up by 0.47% while, Bankex down by 0.40% , FMCG down by 0.14%, TECk down by 0.14% were the losers on the index. (Provisional)

The top gainers on the Sensex were BHEL up by 1.59%, SBI Steel up by 1.53%, Tata Steel up by 1.36%, RIL up by 1.23% and Mahindra & Mahindra up by 1.15%.(Provisional)

On the flip side, HDFC  Bank was down by 2.37%, Bharti Airtel was down by 1.76%, GAIL was down by 1.23%, ONGC was down by and NTPC were down by 0.89% were the top losers on the Sensex. (Provisional)

Meanwhile, indicating further improvement in the health of the Indian manufacturing sector, the seasonally adjusted HSBC Purchasing Managers’ Index, a composite indicator of operating conditions in the manufacturing economy posted a good advancement in November, surging to their five-month high to 53.7 from 52.9 in October.

With this numbers, Indian goods-producing sector has shown output growth advancement for the forty-fourth consecutive month, backed by increase in order book volumes combined with a depletion of post-production inventories.

As per the report, new orders and export sales both increased at manufacturing companies in India during November. While, order book volumes showed fastest expansion since June, the new export orders reported sharpest growth in last five months. Demand was reportedly stronger in both domestic and international markets. In line with higher input costs, prices charged by manufacturers too increased during November.

Indian manufacturing companies increased their input buying during November for the straight 44-month and the pre-production inventories at manufacturing firms increased in November continuing since May. Despite a slow pace, job creation in the Indian manufacturing sector was recorded for the ninth successive month in November.

India VIX, a gauge for markets short term expectation of volatility gained 3.10% at 15.62 from its previous close of 15.15 on Monday. (Provisional)

The S&P CNX Nifty gained 8.90 points or 0.15% to settle at 5,870.95. The index touched high and low of 5,899.15 and 5,854.60 respectively.  23 stocks advanced against 27 declines on the index. (Provisional)

The top gainers of the Nifty were ACC up by 3.87%, Ultratech Cement up by 3.01%, SBI up by 1.83%, Reliance Industries up by 1.68% and JP Associates up by 1.51%. (Provisional)

On the flip side, HDFC Bank down by 2.44%, IDFC down by 2.28%, Bharti Airtel down by 1.82%, Gail India down by 1.49% and ONGC down by 1.28%, were the top losers on the Nifty. (Provisional)

The European markets were trading in green with, France’s CAC 40 down by 0.95%, Germany’s DAX up by 0.40% and the United Kingdom’s FTSE 100 gained 0.25%.(Provisional)

Asian markets ended mixed on Monday as further indications of a stabilizing Chinese economy with positive manufacturing data improved investor sentiments, but gains were capped by concerns that an impasse in U.S. budget talks could tip the world's largest economy into recession. While, Chinese market were dragged down by the sharp plunge in consumer-staple companies. Chinese market led the decliners, as investors were worried about the lack of policies from Beijing to boost the economy. Though, it is being said that China may maintain its annual economic growth target at 7.5 percent next year as the new leadership headed by Xi Jinping might not bear a further slowdown. Japan's Nikkei ended higher, moderating after heavy gain in November.